Growth Points

Growth Points are Frega's branded loyalty reward system. This page provides the complete, authoritative explanation of how Growth Points work, how they are accounted for, and what they are not.

Growth Points are a loyalty reward — not a financial product, stored-value facility, currency, or investment of any kind. They have no cash value, cannot be transferred or exchanged for money, and are redeemable only with the specific business that triggered their issuance. They expire after two years.

The Basic Mechanics

Frega issues Growth Points. Businesses trigger the issuance.

When a qualifying business transaction occurs, the business uses Frega's loyalty service to trigger a Growth Points issuance. Frega then issues the points directly to the customer's account. The business does not issue the points itself.

Each business's Growth Points carry that business's own branding. A customer might hold "The Corner Café Growth Points" and "Bob's Barber Growth Points" in the same customer account — each set independently branded, redeemable only with the business it belongs to.

The Customer Account

Growth Points are held in the customer's Growth Point account — a non-monetary record showing their Growth Points balance across all the businesses they engage with. The customer's Growth Point account is not a wallet, not a financial account, and not a stored-value facility. It records loyalty reward points only.

Redemption

Customers redeem Growth Points directly with the business that issued them. Points cannot be redeemed with any other business and cannot be converted into cash.

When redemption occurs, Frega credits the business's service account from the deferred liability it has been holding on behalf of that business. The business can apply this credit against future service fees.

Growth Points expire after two years from the date of issuance. Businesses are responsible for communicating this to customers.

The Service Fee and How It Is Split

The standard Growth Points service fee starts at 1% of the transaction value being rewarded. The business pays this fee to Frega when it triggers an issuance.

Example: A customer makes a $100 purchase. The business triggers a Growth Points issuance. The service fee is $1 (1% of $100).

$0.65 (65%) is recognised as service revenue. This is distributed to the service providers involved: Advocates, Consultants, Licensees, and Frega.
$0.35 (35%) is recorded as deferred liability under IFRS 15 (Appendix B, B39–B43). This amount is not revenue. It is held as an obligation and is reduced only when the customer redeems their Growth Points, at which point Frega credits the business's service account.

IFRS 15 Compliance

The 35% deferred liability treatment is fully compliant with International Financial Reporting Standard 15, which governs revenue recognition for loyalty programmes. Under IFRS 15 Appendix B (B39–B43), loyalty point obligations are treated as a separate performance obligation — revenue is recognised only when the obligation is fulfilled through redemption, not when the fee is paid.

This accounting treatment confirms that Growth Points are a genuine service obligation, not a financial product.

For Businesses: What Growth Points Give You

Every Growth Points issuance automatically adds the customer and their transaction to your business record. Over time, this builds an automatically growing, structured record of your customers and their transaction history — without any additional data-entry effort.

Combined with Frega Chat, which opens a direct communication channel with every customer in your record, Growth Points create a simple engagement cycle: reward, record, communicate.

What Growth Points Are Not

Not a financial product or investment
Not a stored-value facility or e-money
Not currency or cash equivalent
Not transferable between customers
Not redeemable with any business other than the one that triggered the issuance
Not regulated by the FCA or any financial services authority

How Frega Works — Platform overview.

For Businesses — How businesses use Growth Points.

For Customers — How customers receive and redeem Growth Points.

Definitions — Official definitions of Growth Points, Customer Account, Deferred Liability, Service Fee, and IFRS 15.